There are a few common guidelines insurance companies agree on when deciding on cancellation of car insurance policies. However, outside of this sphere are their individual criteria.

Thus, you will need to discuss any discussion on cancellation of policy directly with your insurance agent to avoid miscommunication or wrong assumptions. Also, you should know that most cases, cancellations are done within 2 months of acceptance.

This is the time when the insurance company digs into your history and can cancel the policy without having to explain their action.

That being said, here are the general guidelines:

Too many claims made could lead not necessarily to cancellation but non-renewal although there have been cases of cancellation because of frequent claims

Non-payment of premium

Cancelled policies are open to question or negotiation. You can re-apply and you will probably be charged a higher monthly premium. However, in the meantime, the state law in most areas requires that the car owner stay off the road until the car is insured again.